Hershberger by Hershberger v. Schwartz
| Decision Date | 19 November 1993 |
| Citation | 198 A.D.2d 859,604 N.Y.S.2d 428 |
| Parties | Michael HERSHBERGER, an Infant, by his Parent and Natural Guardian Brenda HERSHBERGER, and Brenda Hershberger, Individually, Respondents, v. Walter SCHWARTZ, Gloria La Borde, David La Borde, Nathaniel La Borde, Nicholas La Borde and Travis La Borde, Defendants. Gloria LA BORDE, David La Borde, Nathaniel La Borde, Nicholas La Borde and Travis La Borde, Third-Party Plaintiffs-Respondents, v. NATIONWIDE MUTUAL FIRE INSURANCE CO., Third-Party Defendant-Appellant. |
| Court | New York Supreme Court — Appellate Division |
Gough, Skipworth, Summers, Eves & Trevett, P.C. by Louis Cristo, Rochester, for third-party defendant-appellant.
Hall & Karz (Samuel M. Hall, of counsel), Canandaigua, for third-party plaintiffs-respondents, La Borde.
Mousaw, Vigdor, Reeves, Heilbronner & Kroll, by Richard Dollinger, Rochester, for plaintiffs-respondents.
Before CALLAHAN, J.P., and PINE, BALIO, DOERR, and BOOMER, JJ.
Supreme Court properly determined that third-party defendant Nationwide Mutual Fire Insurance Co. (Nationwide) has a duty to defend its insureds in the underlying personal injury action alleging negligent entrustment of a dangerous instrumentality to an infant (see, Cone v. Nationwide Mut. Fire Ins. Co., 75 N.Y.2d 747, 551 N.Y.S.2d 891, 551 N.E.2d 92; see also, Technicon Elecs. Corp. v. American Home Assur. Co., 74 N.Y.2d 66, 73-74, 544 N.Y.S.2d 531, 542 N.E.2d 1048; Seaboard Sur. Co. v. Gillette Co., 64 N.Y.2d 304, 310, 486 N.Y.S.2d 873, 476 N.E.2d 272; International Paper Co. v. Continental Cas. Co., 35 N.Y.2d 322, 325-326, 361 N.Y.S.2d 873, 320 N.E.2d 619). The court erred, however, in awarding third-party plaintiffs costs and attorney's fees incurred in bringing the third-party action. An insured is not entitled to recover the costs and expenses of bringing an affirmative action to settle his rights, but may recover only when he has been cast in a defensive posture by the action of an insurer in an effort to absolve itself from its policy obligations (Mighty Midgets v. Centennial Ins. Co., 47 N.Y.2d 12, 21, 416 N.Y.S.2d 559, 389 N.E.2d 1080; Johnson v. General Mut. Ins. Co., 24 N.Y.2d 42, 50, 298 N.Y.S.2d 937, 246 N.E.2d 713; AFA Protective Sys. v. Atlantic Mut. Ins. Co., 157 A.D.2d 683, 686, 549 N.Y.S.2d 783). The court also erred in denying Nationwide's motion to dismiss the cross claim of plaintiffs. Plaintiffs cannot maintain a direct claim against Nationwide. Plaintiffs are strangers to the homeowners' insurance policy and may not seek enforcement of the insurer's obligation...
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